PEP trade ideas
Does Pepsi Drinks Come With An Inverted Head & Shoulders?Does Pepsi Drinks Come With An Inverted Head & Shoulders?
No of course not! However, the daily chart for the global soft drink has an inverted head and shoulders on the daily chart.
PEP closed above the neckline of the pattern! Also, PEP has 4 touches at the daily trendline (immediately above the neckline). I set an alert on the neckline and at the daily t/l.
Pepsi closed in a daily supply zone on 24 October 2022.
Peace, Love & Abundance,
MrALtrades00
$PEP Pepsi: RSI Suggests We Go to ATHPepsi has key earnings this week which should receive a nice tailwind from it's RSI setup. The 100 session RSI on large timeframes indicate the stock is highly oversold relative to usual times. Historically, such levels on the RSI produce a 15% rally in the following three months. furthermore we are trading at the bottom of a channel, giving me further confidence in a long to retest the highs of the channel.
yellow dotted lines: Key volume support
white dotted lines: Key technical support
blue lines: channel
Rectangle/Earnings 10-12 BMOPEP has been trading inside this channel since December of 2021.
Obviously it can be a long term pattern and is neutral until a trendline is broken.
As a rule, one would go long with a break of the top trendline and a confirmed uptrend and enter short if the bottom trendline was broken.
Some would trade inside this channel and buy at the bottom and sell at the top or short at the top and cover that short at the bottom.
Rectangles eventually break just like everything else (except the microwave I have had for 25 years)
No recommendation.
PEP has a reputation of a stock that lacks volatility as a rule and is considered a defensive play by the talking heads I hear on TV.
EPS (FWD)
6.69
PE (FWD)
25.20
***Div Rate (FWD)
$4.60
Yield (FWD)
2.73%
Short Interest
0.85%
Market Cap
$229.08B
The dividend will help PEP if it can stay afloat and only time will tell if it will hit the ice burg with the rest of the fleet as we keep cruising forward.
I have often wondered why folks hang on to dividends if a stock tanks? I mean like how many dollars a share does a stock need to go down before the dividend is null and void?
I will have to fetch my calculator for that one. (o:
Is PepsiCo Losing Its Pop?With the market under pressure, some investors have sought refuge in consumer staples. But some, like PepsiCo, have also struggled.
The first pattern on today’s chart is the series of lower highs and lower lows since Jerome Powell’s hawkish Jackson Hole speech on August 26. These have produced something of a descending channel, with PEP ending yesterday’s session near the top of the path.
Second, consider how the stock briefly flirted with new highs in mid-August before knifing back into the previous range. That could be interpreted as a false breakout.
Next, PEP has slipped below the 200-day simple moving average (SMA). Has the long-term trend turned bearish?
Finally, MACD has remained negative.
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Earnings watch 6/12 - 6/15Earnings watch 6/12 - 6/15
6/12
PEP
6/13
DAL
6/14
JPM
MS
TSM
CTAS
6/15
BLK
WFC
C
UNH
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*3x lucky 7s of trading*
7pt Trading compass:
Price action, entry/exit
Volume average/direction
Trend, patterns, momentum
Newsworthy current events
Revenue
Earnings
Balance sheet
7 Common mistakes:
+5% portfolio trades, capital risk management
Beware of analyst's motives
Emotions & Opinions
FOMO : bad timing, the market is ruthless, be shrewd
Lack of planning & discipline
Forgetting restraint
Obdurate repetitive errors, no adaptation
7 Important tools:
Trading View app!, Brokerage UI
Accurate indicators & settings
Wide screen monitor/s
Trading log (pencil & graph paper)
Big, organized desk
Reading books, playing chess
Sorted watch-list
Checkout my indicators:
Fibonacci VIP - volume
Fibonacci MA7 - price
pi RSI - trend momentum
TTC - trend channel
AlertiT - notification
tickerTracker - MFI Oscillator
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Pro Traders Take Profits on EarningsWhat happened today on the earnings announcement by PEP? Pro traders took profits against the retail crowd's buying on the news headlines that suggested an earnings "beat" for Q2. The retail buying causes the gap up at open, which is a prime cue to take profits on swing trades.
This was what we call a pre-earnings run. The earnings results don't matter as much as the technical setup a few weeks ahead of the earnings release. Swing trades were initiated at the reversal from the support at 155, confirmed by price and volume patterns at that time.
Now, with resistance overhead, where the initial target for this earnings play was, and the retail crowd causing a gap up at open on the earnings announcement, this is where professional short-term traders close long positions. This should not be construed as a good opportunity to short swing-style, however. It is an example of the execution of a long swing-style earnings strategy.
This is an example of TechniTrader's Relational Technical Analysis techniques for planning better trades.
PEPSICO - LONG TERM BULLISH SCENARIOThe food and beverage giant has had a good year so far. Raising sales forecast, better-than-expected first-quarter results and increased dividend helped PepsiCo to outperform the S&P 500.
Although the good results some of the top analysts on Wall Street have mixed expectations for the company ahead of the earnings report today.
The estimated earnings per share are $1.74 on revenue of $19.51 billion.
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RectangleMaybe a Rectangle Top unless price busts through top trendline.
This is a neutral pattern until a trendline is broken with a strong trend in that direction.
3 candles of indecision in a row.
Sometimes the 20/blue crossing down through the 50/orange can be one of the first warning signs of a change in trend. PEP's moving averages look better than most as of late.
Strong stock with a good dividend.
No recommendation.
Break or Bounce?Price is coming back to test the lower boundary of the up trending channel ! I will wait for a few trading days to watch the price action ! Should the support hold over the next week, I would probably consider a buy! If it fails I will stand aside and look for other opportunities ! Just my opinion :)
PEPSICO TREND AND WAVE ANALYSISBe sure to stick to Stop Lost and TAkE Profit. This is an idea and not a bargain offer
This is just idea, not trading advice, use at own risk.
reasons:
It is recommended to buy in this price limit
It is mandatory to pay attention to the stop loss and the target marked on the chart
Do not be greedy and adhere to the specified principles. I hope you will be profitable
Note that there is no 100% analysis and it is possible to stop flirting
This is a personal analysis and you should not enter into a transaction without review
If you know this, make a purchase
Be sure to adhere to the principles of capital management and do not invest more than 2% of your capital in each transaction.
High-risk individuals can enter a maximum of 5% of risk capital in this transaction by accepting risk-taking.
This analysis has been analyzed with the classic Elliott topics and neo wave style. Also, the principles of price action have been used.